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Problem 1: On August 1, 2017, Pure Company approved a formal plan to sell a business segment. The sale is expected to take place on February 1, 2018. Operating income of the segment from January 1 to August 1, 2017 was P3,500,000 and operating loss of the segment from August 1 to December 31, 2017 was 500,000. On December 31, 2017, the carrying amount and recoverable amount of the segment's net assets were P4,000,000 and P4,500,000, respectively. The income tax rate is 35%. How much is reported in Pure Company's 2017 income statement under the caption "Discontinued Operations"?
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